The American Securities and Exchange Commission (SEC) is facing increasing criticism from the current and former officials on its evolved stance on the Crypto staking services.
On May 29, Corporation Finance Department of SEC New guidance released on crypto stacking Services, claiming that some offerings cannot form securities and can effectively exempt proof-of-set blockchain from registration requirements under the Securities Act.
However, the latest interpretation of SEC may be different from many federal court decisions, according to the former SEC chief of internet enforcement, according to John Reid Starc.
In a statement on X, Stark Argued The latest step of the Commission opposes judicial conclusions in high-profile cases against Crypto Exchange and Coinbase, where judges had earlier allowed allegations that staking products were made qualified as securities under a long legal example.
“This is how SEC dies – in a plain scene,” Stark wrote in a long response to the agency, called Shift “a shameful sacrifice of his investor protection mission”.
For Benance, while the SEC alleged that the stacking services of the exchange formed offerings of unregistered securities, the matter was eventually the case. Rejected with prejudice in May 2025Preventing the agency from filing similar claims. Similarly, in March 2024, a federal judge Agency case allowed to proceed against coinbaseThis indicates that the SEC “adequately pledged” that the staking program included unregistered proposals and sales of securities. In February 2025, the matter was also dismissed as part of a comprehensive change in SEC’s approach for crypto regulation.
Sitting Commissioner Caroline Krenshow also released a statement on May 29 in response to the agency’s perspective for crypto stacking, alert Employees’ findings did not align with the established case law or how to test.
“Employees’ analysis shows that some people desire law, but it is not square with the court’s decision on stacking and for a long time on the examples of Hovi, on which they are based,” Creshow wrote, adding it:
“This is another example of fake on the ongoing SEC ‘fake until we make it an approach to Crypto – to take action based on the expectation of future changes while ignoring the current law.”
The Commission has recently launched a series of deregurate steps on digital assets, including closing the investigation, leaving the cases and launching rounds to discuss regulation with the industry participants.
“This Crypto-Direguratery Blitzcrayg,” Stark wrote, “Once destroyed the 90-year heritage.”
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While the SEC has implicated its recent functions as part of the attempt to provide regulator clarity, critics say the result is further confusion.
In a statement of June 2, Crenshaw Questioned The continuity of the commission’s approach points to examples where the agency appears as certain digital assets, such as Ether (ETH) and Solan (Sol) tokens, securities.
“How is it that these crypto property registration is not considered to be securities when they come to the requirements, but are easily securities when a registrar sees the opportunity to sell a new product?” Creshow said.
Las Vegas, Nevada, Speaking at Bitcoin 2025 Conference in Commissioner Hester Peerus Pushed back against criticism In the new tech of the agency on Crypto, given that the classification of a securities transactions depends more on the nature of the deal than the asset:
“Most crypto assets, as we see them today, are probably not securities themselves. It does not mean that you cannot sell a token that itself is not a transaction security that is a securities transaction. That’s the place where we really need to provide some guidance.”
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